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Trade and Economic Geography: a Note on Krugman’s contribution to Economic Theory

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Author Info
Héctor Mauricio Posada Duque () (Grupo de Estudio Regionales de la Universidad de Antioquia)
Juan Esteban Vélez Villegas () (Grupo de Estudio Regionales de la Universidad de Antioquia)
Abstract

The purpose of this paper is to present the major contributions of Paul Krugman to economic theory. It shows the contribution and influence that articles of 1979 and 1991 have exerted on the renewal of trade theory and the emergence of new economic geography. In these articles, Krugman successfully explains intraindustry trade, trade among developed countries and agglomeration processes, all these phenomena of great importance that had not been satisfactorily explained from the point of view of standard neoclassical models. To do so, he uses a theoretical framework that incorporates monopolistic competition and increasing returns to scale.

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Publisher Info
Article provided by Universidad de Antioquia, Departamento de Economía in its journal LECTURAS DE ECONOMÍA.

Volume (Year): (2008)
Issue (Month): 69 (Julio-Diciembre)
Pages: 299-311
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Handle: RePEc:lde:journl:y:2008:i:69:p:299-311

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Related research
Keywords: Increasing returns; monopolistic competition; Paul Krugman; new trade theory; new economic geography.;

Find related papers by JEL classification:
B30 - Schools of Economic Thought and Methodology - - History of Thought: Individuals - - - General
F10 - International Economics - - Trade - - - General
F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
R10 - Urban, Rural, and Regional Economics - - General Regional Economics - - - General

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This page was last updated on 2009-11-29.


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